Catenaa, Tuesday, July 08, 2025- A US appeals court has granted a joint motion to vacate the long-running legal battle between the Treasury Department and crypto advocacy group Coin Center over the government’s sanctioning of crypto mixing platform Tornado Cash.
The case stems from an August 2022 decision by the Treasury’s Office of Foreign Assets Control (OFAC) to designate Tornado Cash under sanctions laws, barring US individuals and companies from interacting with the tool.
That designation triggered widespread backlash across the crypto industry, prompting Coin Center to challenge the move in court, arguing that OFAC overstepped its legal authority.
The appeals court action follows OFAC’s decision in March to formally rescind its sanctions against Tornado Cash. In a joint filing last week, both parties stated that the sanctions removal renders the case moot.
Coin Center’s executive director Peter Van Valkenburgh said Monday that the court’s acceptance of the motion brings the legal dispute to a formal close.
The Court Document ca be seen here.
Van Valkenburgh said that the government had no interest in defending what Coin Center called an overly broad interpretation of sanctions law.
The decision to drop the appeal marks a significant moment in the legal discourse around decentralized tools, setting a precedent for how regulators may approach blockchain-based technologies moving forward.
